Chairman's Message

Fatimafert Limited (formerly DH Fertilizers Limited) has a bright future and the company looks forward to growth in volume and return for its investors.

On behalf of the Board of Directors of Fatimafert Limited (formerly DH Fertilizers Limited), I welcome you to the Company’s website.

Market Overview

Compared to 2013, the year 2014 was better for the global fertilizer industry, with prices improving of both Nitrogenous and Phosphate fertilizers. The Nitrogen market was weak during 2013, with prices sliding in the Middle East to USD 290 per ton. Favorable demand in the East with China producing less and Middle East benefiting from improved supply resources has ensured that the Nitrogen market strengthened in 2014. The Middle East prices hence improved to USD 340 per ton by the end of the third quarter of the year. Though the demand softened towards the end, the year closed stronger than anticipated with the prices in the Middle East at USD 320 per ton and prices in China at USD 285 per ton. Supply still remains a concern as there are potentially huge volumes available in China for export. In Pakistan, the gas shortage persisted for the fourth consecutive year and was the severest ever for the three plants on the SNGPL network. With commodity prices remaining under pressure, particularly for rice and sugarcane, farmers were reluctant to invest in Nitrogen fertilizers. Therefore, the Urea market declined by 4.5%, from 5.89 Million Tons in 2013 to 5.63 Million Tons in 2014. The Phosphate market continued to recover from the slide in 2012

Demand both in the west and the east ensured that the global market was stable to firm. Thus prices in China rose from as low as USD 400 per ton in December 2013 to USD 500 per ton by September 2014. Saudi Arabia followed suit. By the and of the year, the demand softened slightly due to seasonal low, hence prices softened to USD 485-490 per ton. In Pakistan, the Phosphate market registered an improvement by 5%, from 1,625 KT in 2013 to 1,709 KT in 2014. This was a consequence of under dosage by farmers in 2011 and 2012. Therefore, farmers moved towards balanced application in 2013 and 2014. We are proud to announce that we delivered substantially good results for the shareholders through better production and sales.

Company Performance

The overall sales of the Company improved over 2013. Sales of Urea remained in line with production and increased by 6.58% from 350 KT in 2013 to 373 KT in 2014. However, sales of CAN dropped by 5.9%, with lower consumption due to overall decline in the Nitrogen market impacted by lower water availability. NP continues to go from strength to strength with increasing awareness among farmers regarding the benefits of the product. Consequently the sales increased by 12.12% over last year with strong demand supported by better availability of product.

Acknowledgements

The Board of Directors wish to place on record their appreciation for the assistance, guidance and cooperation that Fatimafert Limited received from all stakeholder including the Government of Pakistan, Financial Institutions, Commercial Banks, SNGPL, Business Associates, Customers and all others whose continued support has been a source of strength to the company. The Directors also sincerely appreciate the devotion and commitment of every employee of the company.

Arif Habib
Chairman
Fatimafert Limited

Page Last Updated: Sunday, May 01, 2016